First National Bank Alaska Unaudited Results Announced for Fourth Quarter 2018

ANCHORAGE, Alaska–(BUSINESS WIRE)–First National Bank Alaska’s (OTCQX:FBAK) unaudited net income for
fourth quarter 2018 was $12.4 million, or $3.92 per share. This compares
to net income of $4.2 million, or $1.32 per share for the same period in
2017. Pre-tax income was $16.1 million for the quarter compared to $12.9
million for the fourth quarter in 2017.

Fourth quarter 2017 carried adjustments for transactions related to the
Tax Cuts and Jobs Act which lowered 2018 corporate tax rates and
required revaluation of net deferred tax assets and certain investments
during December 2017.

Net interest and loan fee income for fourth quarter 2018 was $34.4
million, an increase of 5.8 percent from fourth quarter 2017, positively
impacted by rising yields on earning assets and continued low provision
for loan losses attributed to the high-quality loan portfolio.

Full year 2018 net income was $54.1 million, or $17.07 per share.
Comparatively, net income for 2017 was $36.4 million, or $14.85 per
share. Return on assets was 1.46 percent and return on equity was 10.93
percent, increasing from 1.00 percent and 7.27 percent, respectively,
during the same period in 2017. The efficiency ratio improved to 52.96
percent compared to 55.05 percent during the same period in 2017. Income
tax expense decreased to an effective rate of 23.5 percent.

Gains on the sale of property no longer used for bank purposes elevated
2018 pretax income by $4.3 million. Realized pretax losses of $1.7
million on the sale of securities were also recorded under a
repositioning strategy to improve total investment portfolio performance
and offset taxable gains. Combined, these transactions increased 2018
net income $2.0 million.

Balance sheet changes for the quarter ended December 31, 2018:

  • Total assets decreased $4.0 million to $3.75 billion
  • Gross loans increased by $46.6 million to $1.95 billion
  • Deposits and repurchase agreements decreased $20.0 million to $3.23
    billion
  • Total shareholders’ equity increased $13.9 million to $506.85 million

Balance sheet changes for the year ended December 31, 2018:

  • Total assets increased $100.3 million to $3.75 billion
  • Gross loans increased by $139.7 million to $1.95 billion
  • Deposits and repurchase agreements increased $104.4 million to $3.23
    billion
  • Total shareholders’ equity increased $10.0 million to $506.85 million

“Our 2018 net income performance is a reflection of our commitment to
our customers’ success and the outstanding performance of our
employees,” said Betsy Lawer, Board Chair and CEO. “First National
delivered improvement in all critical performance ratios, benefitting
our employees and shareholders alike.”

First National Bank Alaska files a quarterly financial report with the
Federal Financial Institution Examination Council. Our latest
Consolidated Report of Condition and Income (Call Report) was filed
January 30, 2019, and is posted at www.FNBAlaska.com
> Financial Reports and at www.OTCMarketc.com.

Alaskan-owned and -operated since 1922, First National proudly meets the
financial needs of Alaskans with ATMs and branches in 18 communities
throughout the state, and by providing banking services to meet their
needs across the nation and around the world. In 2018, Alaska Business
readers voted the bank the “Best of Alaska Business” in the Best Place
to Work category for the third year in a row and as best Corporate
Citizen for the second, and American Banker recognized First
National as a “Best Bank to Work For” In January 2018, Microsoft News
named First National the most admired company in the state. In October
2018, First National received the Rita Sholton Large Business of the
Year Award from the Alaska Chamber.

Visit FNBAlaska.com
for more information about Alaska’s largest locally-owned bank and
access to efficient and secure online banking services. First National
Bank Alaska is a Member FDIC and Equal Housing Lender.

Contacts

Cheri Gillian, 777-3409
http://www.FNBAlaska.com

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